Aer Lingus: Another fine mess we’re in?
Initially, I was proved wrong, because the share price did rise after the launch. This reflected the fact that the airline was sold cheaply in the first place, but the attempt by Ryanair to take over and the response of the pilots, among others, also boosted demand for the shares. The share price has subsequently fallen back, and many investors, including Ryanair and the pilots, are now nursing considerable losses. For Ryanair, there is the comfort of knowing it holds a big stake in its main competitor, but for the pilots it is more difficult to see a bright side. The only consolation they can take at the moment is that investing in equity markets is a long-term game and patience can sometimes be necessary.
However, current developments within the company would not inspire much confidence. SIPTU is currently threatening to take industrial action or even walk out of social partnership because of the pay freeze imposed on staff by the airline until a €20 million cost-cutting plan is implemented. At the same time pilots are being suspended because of their refusal to cooperate with the hiring of staff to operate the controversial Belfast to Heathrow slot. I
